DES MOINES, Iowa – Sept. 15, 2014 – More than two-thirds of Americans (68 percent) feel that it's a good time to buy a home – but many won't try because they think tighter mortgage rules have made them ineligible for a loan.
After the recession ended, the U.S. tightened lending rules to keep a similar meltdown from happening again. But stories about tighter requirements have led some creditworthy buyers to think they cannot get a loan, according to the "How America Views Homeownership"
survey by Ipsos Public Affairs for Wells Fargo & Company.
"Our survey found Americans still view homeownership as an achievement to be proud of," says Franklin Codel, head of Wells Fargo Home Mortgage Production.
But "our survey also suggests we have an opportunity as lenders, nonprofit agencies and real estate agents to better inform Americans about credit ratings, mortgage costs and housing affordability," he adds.
The "How America Views Homeownership" nationwide survey of 2,017 adults also revealed many Americans report that their financial houses are in order, which improves their ability to buy a home. For example:
Home buying: What consumers know
"It's important for prospective homebuyers … to ask lenders and real estate agents questions about available options, such as downpayment assistance or FHA loan programs or VA loans for veterans," says Codel. "Ninety-five percent of survey respondents said
they want to own a home if they don't already."
© 2014 Florida Realtors®
IRVINE, Calif. – Dec. 4, 2013 – Overall U.S. foreclosure activity is down 23 percent year-to-date through October 2013, but foreclosure activity on homes in the $5 million-plus value range is up 61 percent from the same time period in 2012, according to
The total number of these ultra high-end properties with a foreclosure notice in 2013 is relatively miniscule – fewer than 200 compared to 1.2 million total properties in all value ranges with foreclosure notices this year – but each represents a much bigger
potential loss for the foreclosing lender compared to a median priced home.
The trend doesn’t necessarily mean that more high-end homeowners are in financial trouble. According to RealtyTrac’s analysis, more lenders may now be financially stable enough to comfortably weather some big-ticket losses. In addition, a stronger housing market
means even ultra high-end homes could attract more prospective buyers, allowing lenders to recoup more of their losses on the jumbo loans gone bad.
“A home selling for $5 million or above represents the ultra-luxury end of the market, and so far in 2013, we’ve had 34 properties close over that price with the average sale being $7.7 million,” says Emmett Laffey, CEO of Laffey Fine Home International, covering
the five boroughs of New York. “Any foreclosure properties in this type of ultra-luxury market usually get purchased very quickly since there is one thing all super rich buyers want – an outstanding deal on a real estate transaction, and in most cases foreclosures
of this magnitude come with several million more dollars of built-in value.”
The delayed rise in foreclosure activity on these high-end properties may not all be instigated by the lenders, however. Some of the homeowners may have had the means to hold out against foreclosure longer than other homeowners.
Florida high-end foreclosures
Florida and California together accounted for more than 60 percent of all ultra high-end foreclosure activity so far in 2013. In both states, a combination of a severe housing boom and bust over the past seven years along with a plethora of high-value coastal
property, have resulted in relatively high numbers of high-end foreclosures – although high-end foreclosure activity in California was actually down compared to a year ago.
By metro area, South Florida (Miami-Dade through Pompano Beach) landed the No. 1 spot for high-end foreclosures with 47 properties in 2013 – a 488 percent increase since 2012. The Orlando-Kissimmee area ranked third with 12 high-end foreclosures – a 500 percent
increase over 2012.
Because a listing price isn’t consistently available on properties in foreclosure, for the purposes of this analysis, RealtyTrac categorized properties into value ranges using three different data points available in its real estate database: estimated amount
of outstanding loans on home; estimated market value; and assessed value from the tax assessor. If any of the three amounts was above $5 million, the property was included in the $5 million-plus category.
© 2013 Florida Realtors®
"The monthly mortgage payment for a median-priced single-family home is now $700, compared to $1,140 in 2006 — a decline of nearly 40%," he said in comments on the latest release from Fiserv.
The National Association of Realtors found a similar trend. On Wednesday, the trade group revealed that the
median price on existing home sales fell in most of the 150 metropolitan areas surveyed by the organization in the third quarter.
Price declines and low mortgage rates have resulted in a ratio of monthly mortgage payments to median family income that is the lowest on record based on Fiserv analytics.
US Housing Affordability At All Time Low
"Housing affordability has improved dramatically because of declines in both prices and mortgage interest rates," said David Stiff, chief economist at Fiserv. "The monthly mortgage payment for a median-priced single-family home is now $700, compared to $1,140
in 2006 — a decline of nearly 40 percent. Nationally, purchase mortgage payments now account for only
13 percent of monthly median family income, the lowest percentage on record (since 1971), and compared to 23 percent in the first quarter of 2006."
Price declines and low mortgage rates have resulted in a ratio of monthly mortgage payments to median family income that is the lowest on record based on Fiserv analytics . (since 1971)
Although affordability has increased, Stiff said, housing demand remains depressed with existing home sales back to 1998 levels, with the average annual rate trending at 4.3 million units since June.
Sales of existing homes rose 7.7% in August despite tighter lending standards and appraisal problems.
SIX GOOD REASONS TO BUY A HOME
New Refinance Program to Help More Floridians
During a recent gathering of real estate professionals, hosted by University of Miami Law School, discussions were centered on the long list of government initiatives aimed at fixing the housing market. The Home Affordable Modification Program, for example,
has had a very minimal impact in Florida.
New initiatives, like the revamped Home Affordable Refinance Program is aimed at addressing some of the shortcomings of past efforts. The new HARP, announced last week by President Obama, will open up the government refinance initiative to people who owe
significantly more on their mortgages than their properties are worth.
New Fannie Mae Updates can be found at:
Pinellas County Real Estate Market Statistics for May 2010:
Closings of single family homes in May matched the number in April and were 27.6% higher than
May 2009. The median price was down by 4.4% from the previous year. While listings were also
down 9.3%, the drop in inventory slowed compared to the first four months of 2010.
There was a 37.7% increase in condo sales from May 2009 to May 2010. The median price was
down 8.6% from last year. Condo listings were down by 13.8%
While some saw the fewer number of sales in May in comparison to April, year after year there have
been fewer condo sales when looking at month-to-month sales. On the other hand, single family sales
usually go up between April and May. This year they were even. Month-to-month comparisons
might be interesting, but they seldom represent a trend.
Total Property Sales
Total Dollar Volume
Average Sales Price
Median Sales Price
Total Active Listings
Total Pending Listings
Month Supply of Inventory
Pinellas Single Family 10-May 09-May % Change
Total Property Sales 786 616 27.60%
Total Dollar Volume $144,959,800 $124,520,000 16.41%
Average Sales Price $184,400 $202,100 -8.76%
Median Sales Price $138,800 $145,000 -4.28%
Total Active Listings 6,270 6,910 -9.26%
Total Pending Listings 687 799 -14.02%
Month Supply of Inventory 8.1 12.7 -36.22%
Pinellas Condo 10-May 09-May % Change
Total Property Sales 489 355 37.75%
Total Dollar Volume $87,267,900 $67,414,000 29.45%
Average Sales Price $178,500 $189,900 -6.00%
Median Sales Price $118,800 $130,000 -8.62%
Total Active Listings 5,375 6,234 -13.78%
Total Pending Listings 388 460 -15.65%
Month Supply of Inventory 11.7 20.1 -41.79%
From PINELLAS REALTOR ASSOCIATION
For more statistics, see Marketplace Statistics, Monthly Market Report and other reports on the